China consumer price index up by 2.7% y/y in July 2022
China's consumer inflation, measured by the consumer price index (CPI), went up by 2.7% y/y in July, accelerating from the 2.5% y/y in June and 2.1% y/y in May. In July, China's CPI grew at the fastest pace in 2 years while all 8 components of the CPI basket recorded elevated prices. Among the 8 components, transportation and communications continued to post the highest y/y increase of 6.1%, largely due to the rising oil prices.
The prices for food, tobacco and alcohol category continued to go up, increasing by 4.7% y/y in July. The rise in food prices was mainly driven by elevated prices for pork and fresh vegetables. Pork prices had been declining y/y since October 2020. However, in July, it hiked by 20.2% y/y. China's core CPI, excluding volatile food and energy prices, increased by 0.8% y/y in July.
Further data and analysis on China's economy are available on the CEIC China Economy in a Snapshot – Q3 2022 Report.